The International Labour Organization canceled the appointment of US government official Sheng Li as deputy director-general because Washington has fallen behind on its contributions. Director-general Gilbert Houngbo revoked the July start date after noting repeated payment delays. The April announcement now sits in limbo while the United States owes more than 173 million Swiss francs in arrears and nearly 84 million more for 2026.
The Geneva-based agency has lacked a deputy director since September, when American Celeste Drake departed. The post has traditionally gone to a US citizen, yet staff unions questioned maintaining that custom amid mounting unpaid bills. The ILO will review its finances and reform plans during its governing body session on June 12 and 13. Officials stressed that the decision leaves open the possibility of restoring the appointment if Washington settles its debts and regains its status as the largest contributor.
The organization faces broader financial strain and is advancing reforms that include eliminating around 120 positions by 2029, with potential deeper cuts reaching 350 jobs worldwide. Hiring has already been frozen as a last-resort measure. With 3,454 employees spread across headquarters and field offices, the agency must balance tradition, cash flow and survival in an era when even long-standing donor privileges can vanish over unpaid invoices.
